20160623-招商证券_香港_-Morning_Express_12页_523kb

CMS(HK) Research Highlights Summary

Core Content Overview

The document provides a detailed summary of the research highlights from CMS (China Hardware Technology) for the period around June 2016, focusing on key upgrade trends in the hardware technology sector, stock market indices, global commodity prices, and exchange rates. It also includes company-specific analyses, research coverage, and market outlooks across various industries such as auto, oil and gas, property, technology, and consumer staples.

Key Upgrade Trends in Hardware Technology

1. Dual Camera Adoption

   • Dual cam is becoming a mainstream specification in flagship models.
   • Sunny Optical (2382 HK) and AAC (2018 HK) are highlighted as key suppliers.
   • Q-Tech (1478 HK) is increasing its CCM capacity to support dual cam production.
   • Dual cam CCM ASP is expected to increase due to the pixel migration trend, offsetting the ASP downtrend for same-pixel upgrades.
   • Oppo R9 and Vivo X7 are expected to feature 16MP front cameras, driving demand.

2. Antenna + Metal Casing Integration

   • Apple is redesigning its iPhone 7 with a metal casing that eliminates antenna lines.
   • Chinese handset manufacturers are expected to follow this trend.
   • AAC and Tongda (698 HK) are identified as beneficiaries due to their expertise in both antenna and metal casing technologies.
   • ASP for the integrated solution is higher (US$30-40) compared to standalone metal casing (US$15-30).

3. Water-Resistant Dual Speakers

   • A long-awaited upgrade in acoustics is the introduction of water-resistant dual speakers.
   • This upgrade is expected to result in a significant increase in ASP, with estimates of a 25% hike for dual speakers and 50% for water-resistant speaker boxes.
   • Companies like Vivo and Huawei are launching models with this feature.

Stock Market Indices

Global Commodity Prices

Exchange Rates

Research Coverage Highlights

• Nonferrous Metals

  • The State Council announced a top-level document on supply-side structural reform.
  • Focus is on resolving overcapacity and promoting deep processing.
  • Companies like Nanshan Aluminium (600219), Yunhai Special Metals (002182), and Yinbang Clad Material (300337) are recommended for performance and growth.
  • China Molybdenum (603993) is highlighted for its overseas M&As and global mining potential.
  • Rare-earth permanent magnets are expected to see price increases.

• Hardware Technology

  • Companies like Sunny Optical (2382 HK), AAC (2018 HK), and Tongda (698 HK) are recommended due to their roles in dual cam and antenna/metal casing technologies.
  • Q-Tech (1478 HK) is noted for increasing CCM capacity.

• Property

  • Companies like China Resources Land (1109 HK), YUEXIU PROPERTY (123 HK), and Agile Property (3383 HK) are recommended for growth potential.
  • Country Garden (2007 HK) is given a neutral rating.

• Technology, Media & Telecom

  • Companies like Tencent (700 HK), NetDragon (777 HK), and Chinasoft (354 HK) are recommended.
  • Cheetah Mobile (CMCM US) and 58.com (WUBA US) are highlighted for significant upside potential.

• Consumer Staple

  • Hengan Int'l (1044 HK) and China Mengniu Dairy (2319 HK) are recommended for growth and performance.

• Retail

  • Intime Retail Group (1833 HK) and Gome Electrical (493 HK) are recommended for their potential in the retail sector.

• Alternative Energy

  • GCL-Poly Energy (3800 HK) and China Longyuan Power (916 HK) are recommended for their growth in the renewable energy sector.

Key Points

• The adoption of dual cameras and integrated antenna/metal casing is expected to drive growth in the hardware technology sector.
• The nonferrous metals sector is under supply-side structural reform, with a focus on performance and growth.
• The stock market indices showed mixed performance, with some indices rising and others declining.
• Commodity prices were mixed, with some showing declines and others increases.
• Exchange rates were relatively stable, with minor fluctuations.
• The research highlights companies across multiple sectors with varying ratings and upside potential.

Risk Factors

• Supply-side structural reform may fall below expectations.
• Systematic risk associated with large-cap stocks.

Conclusion

The document outlines the key trends and investment opportunities in the hardware technology sector, emphasizing the adoption of dual cameras, antenna + metal casing integration, and water-resistant speakers. It also provides a comprehensive overview of stock market indices, global commodity prices, and exchange rates, highlighting companies with growth potential across various industries. The research recommendations and coverage lists offer insights into the current market sentiment and investment outlook.